chapter 8 bar and beverage management

Chapter Chapter Chapter Chapter 8888

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Today’s Beverage IndustryToday’s Beverage Industry

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Today’s Beverage IndustryToday’s Beverage Industry

Today’s Beverage Industry

� Since Since Since Since 1990199019901990, there has been a gradual decline in alcohol , there has been a gradual decline in alcohol , there has been a gradual decline in alcohol , there has been a gradual decline in alcohol consumption.consumption.consumption.consumption.

� What people are drinking (and trend)?What people are drinking (and trend)?What people are drinking (and trend)?What people are drinking (and trend)?� What people are drinking (and trend)?What people are drinking (and trend)?What people are drinking (and trend)?What people are drinking (and trend)?� The health-and-fitness enthusiast looks for lighter drinks (less alcohol

and fewer calories);

� Sales of spirits (high in alcohol and calories) continue to decline;

� “White goods” (vodka, gin, rum and tequila) do better than “brown goods” (bourbon, Scotch and other whiskies), although they all have similar alcohol content;

FBM-343 Beverage and Bar Management �.�� ก��3333

similar alcohol content;

� Beer sales look mighty impressive when compared to wine and spirits;

� Most restaurants recently offer wines by the glass in addition to wine by the bottle

Beverage & Bar Business

� The BeverageThe BeverageThe BeverageThe Beverage----Only Bar: Only Bar: Only Bar: Only Bar: � The simplest kind of beverage enterprise that serves beverage

alone except snacks (i.e. peanut, pretzels, cheese and cracker).alone except snacks (i.e. peanut, pretzels, cheese and cracker).

� Beverage-only bars are definitely a minority today. Although some are highly profitable, serving liquor alone is sometime not enough to attract and keep customers.

� Bar/Entertainment Combinations:Bar/Entertainment Combinations:Bar/Entertainment Combinations:Bar/Entertainment Combinations:� Bars that usually offers a wide range of entertainment i.e. the

neighborhood bar with pool, pinball, dartboards or giant TV screens; nightclubs with entertainers; comedy clubs; ballrooms with


neighborhood bar with pool, pinball, dartboards or giant TV screens; nightclubs with entertainers; comedy clubs; ballrooms with big bands, etc.

� In between are cocktail lounges and nightclubs with live entertainment i.e. piano bars, country-and-western dancing, jazz, duos, etc.

Beverage & Bar Business

� Bars and the Smoking DebateBars and the Smoking DebateBars and the Smoking DebateBars and the Smoking Debate� The cigar bar is another trendy addition to the beverage scene—and a profitable one, too. beverage scene—and a profitable one, too. Customers who enjoy high-priced cigars also have the opportunity to order premium spirits, wines, beers, and after-dinner drinks to accompany them.

� The cigar boom is not legal in all venues since smoking is prohibited in many public places by local and/or state ordinance.

� Airline Beverage ServicesAirline Beverage ServicesAirline Beverage ServicesAirline Beverage Services::::


and/or state ordinance.� Airline Beverage ServicesAirline Beverage ServicesAirline Beverage ServicesAirline Beverage Services::::

� Beverage services that are provided on airline flights.

Beverage & Bar Business (cont.)

� Food and Beverage Combination:Food and Beverage Combination:Food and Beverage Combination:Food and Beverage Combination:� One type is the restaurant/bar – drinks/wines are part of the meal

service, served by the same wait staff that serves meals;� Another type of food-beverage combination is bar that offers light

service, served by the same wait staff that serves meals;� Another type of food-beverage combination is bar that offers light

food in addition to drinks;� A special variation of food-beverage combination is the wine barwine barwine barwine bar� A brew pub – a beer version of the wine bar

� Hotel Beverage Operations:Hotel Beverage Operations:Hotel Beverage Operations:Hotel Beverage Operations:� Beverage services differs in many ways (with different purposes)

from the bar or the bar-restaurant combination in hotels (i.e. lobby


from the bar or the bar-restaurant combination in hotels (i.e. lobby bar, cocktail lounge, restaurant bar, a nightclub with dancing, room service, minibar etc).

FBM-343 Beverage and Bar Management

Similarities and Differences

� Grouping types of beverage service into these rather arbitrary categories does not really adequately describe the character of individual enterprises. describe the character of individual enterprises.

� Many establishments do not fit handily into a specific category, and those within categories can be as different as day and night. Yet all categories have certain similarities.

� They all sell alcoholic beverages. They have similar staff structures, patterns of purchasing and inventory,


They all sell alcoholic beverages. They have similar staff structures, patterns of purchasing and inventory, and ways of controlling the merchandise.

Similarities and Differences

� A successful business meets the needs and desires of a certain clientele and strives to be deliberately different from others serving a deliberately different from others serving a similar clientele in order to stand out in the competition for customers.

� Other major reasons for the wide variety of bar operations are simple: the special circumstances of each operation, as well as the personalities,


of each operation, as well as the personalities, desires, and budgets of their owners. But to be successful, the entrepreneur must put clientele above all else in shaping his or her enterprise.

Employee ManagementEmployee ManagementEmployee ManagementEmployee ManagementEmployee ManagementEmployee ManagementEmployee ManagementEmployee Management

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Employee ManagementEmployee ManagementEmployee ManagementEmployee ManagementEmployee ManagementEmployee ManagementEmployee ManagementEmployee Management

Employee ManagementEmployee ManagementEmployee ManagementEmployee Management

� Employees affect your profits in many other ways. They are important links in any cost-control system. They are your best merchandising agents. To your are your best merchandising agents. To your customers, they represent you and your philosophy. So how do you go about finding the right people and putting them all together to function in a smooth operation?

� The kinds of employees you will need depend a great deal on your type of beverage business. First we’ll look


deal on your type of beverage business. First we’ll look at the entire spectrum of staff positions, then we will consider how to determine your own staffing needs.

Staff PositionStaff PositionStaff PositionStaff PositionStaff PositionStaff PositionStaff PositionStaff Position

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Staff PositionStaff PositionStaff PositionStaff PositionStaff PositionStaff PositionStaff PositionStaff Position

Staff PositionStaff PositionStaff PositionStaff Position

� The staff needs of bars are unique to each establishment, and there is probably no bar that has all of the positions that we describe.has all of the positions that we describe.


1111. . . . The BartenderThe BartenderThe BartenderThe Bartender

� The central figure in any beverage operation is the bartenderbartenderbartenderbartender, , , , who is an amalgam of salesperson, entertainer, mixologist, and entertainer, mixologist, and psychologist

� Of course the bartender’s primary function is to mix and serve drinks for patrons at the bar and/or to pour drinks for table customers served by waiters or waitresses.


served by waiters or waitresses.� The bartender is typically a host

and a promoter whose combination of skill and style translates into publicrelations benefits that build goodwill and good business.

The BartenderThe BartenderThe BartenderThe Bartender

� Bartending is as wide-ranging a job as you can get in the foodservice business, and it is never as simple—or as glamorous—as it seems. simple—or as glamorous—as it seems.

� The bartender is: the person who notices when the bar is getting crowded and crazy, and uses eye contact and a smile to buy time when newcomers or singles approach the bar; the person whose wit, wisdom, and approachability make him or her the center of conversation and the purveyor of both advice and drink concoctions; the person who can


advice and drink concoctions; the person who can hold court behind a sleek bar at the ritziest private party or unclog the men’s-room sink in a pinch.

� Bartending requires certain skills and aptitudes, not the least of which are patience, adaptability, and a good attitude.


� When you’re looking for candidates for a bartender job consider these points:1. Sex makes no difference.1. Sex makes no difference.2. The bartender is a good host3. The bartender is a diplomat4. The bartender is an authority figure5. The bartender is a role model6. The bartender knows how to mix a drink


6. The bartender knows how to mix a drink7. The bartender pays attention to detail8. The bartender is imaginative and fun

ALL I REALLY NEED TO KNOW I LEARNED BARTENDINGALL I REALLY NEED TO KNOW I LEARNED BARTENDINGALL I REALLY NEED TO KNOW I LEARNED BARTENDINGALL I REALLY NEED TO KNOW I LEARNED BARTENDING

� Everything I really need to know about how to exist in this world, personal or business, I learned bartending. This knowledge was shared with me bartending. This knowledge was shared with me by owners, managers, salesmen, waitresses, waiters, bartenders, and customers.

� Most of these teachers were successful in life’s everyday challenges. These tips you cannot spend, they are the tips you keep for life:


spend, they are the tips you keep for life:

ALL I REALLY NEED TO KNOW I LEARNED BARTENDINGALL I REALLY NEED TO KNOW I LEARNED BARTENDINGALL I REALLY NEED TO KNOW I LEARNED BARTENDINGALL I REALLY NEED TO KNOW I LEARNED BARTENDING

� Give everyone a fair shot.� If you haven’t anything nice to

say, don’t say it.� Use the BEST premium products

� Wear a clean shirt every day.� Don’t cheat or steal.� Smile!� Keep your hands and fingernails � Use the BEST premium products

and you’ll be the BEST.� Serve.� Be the solution to the problem,

not part of the problem.� Don’t drink and drive, don’t let

others.� Respect salesmen, you’re one.� Don’t take sides. You’ll make

� Keep your hands and fingernails clean.

� Use Mr., Sir, or Ms. when talking to strangers.

� Don’t be a part of a rumor.� Keep your space clean.� Don’t waste.� Be on time.


� Don’t take sides. You’ll make two enemies.

� Be NEAT.

� Be on time.� Help others when they’re busy.� Don’t use the easy way. Use the

right way.� Don’t give up. Follow your

dream.

2. The Barback

� A barback typically relieves the bartender of all chores except pouring the drinks and handling the customers and the cash register. and the cash register.

� A barback may be responsible for any or all of the following tasks: setting up the bar; preparing garnishes, special mixes, and syrups; filling ice bins; washing glassware and utensils; maintaining supplies of towels, napkins, picks, straws, stir sticks, and matches; keeping bar surfaces and ashtrays clean; washing fixtures; and


bar surfaces and ashtrays clean; washing fixtures; and mopping floors.

2. The Barback

� The barback is also a runner or gofer, who goes for liquors, beers, wines, and other supplies as needed by the bartender. Often a barback is an apprentice bartender and may serve beer or mix simple drinks under the bartender’s supervision. In short Often a barback is an apprentice bartender and may serve beer or mix simple drinks under the bartender’s supervision. In short a barback program is an excellent way to always have people in training for bartending positions.


3333. . . . The Server

� Beverage service at tables, whether in a cocktail lounge or in a dining room, is handled by waiters or waitresses, a group collectively referred to as servers. Servers record the customers’ drink or waitresses, a group collectively referred to as servers. Servers record the customers’ drink orders, transmit them to the bartender, pick up the drinks, serve the customers, present the tab, and collect payment

� Like the bartender, the server is also a host and a promoter. A few basic requirements for table


a promoter. A few basic requirements for table servers include a pleasant personality, a neat and attractive appearance, poise, and a mind for detail


� The server must actually offer cocktails, wine, or beer to every table. As elementary as it sounds, failure to ask for the sale is the principal reason that a sale is not made. And remember, there are numerous opportunities during every guest’s visit there are numerous opportunities during every guest’s visit when a selling suggestion is appropriate. A good training program should help servers learn these important cues.

� The server must make it known to customers that he or she is happy to assist them in selecting a beverage. Again, training gives your server these skills, which builds their confidence and improves your business. At the very least good bar service requires a basic knowledge of a broad array of drinks and some variations, so the server can pin down the customer’s


requires a basic knowledge of a broad array of drinks and some variations, so the server can pin down the customer’s exact preferences: Does he want his Martini with an olive or a lemon twist? Does she want her Sour straight up or on the rocks? The best cocktail server’s drink knowledge is almost as extensive as a bartender’s. A server may even mix drinks to allow the bartender to take a break.


� In many restaurants waiters and waitresses serve both food and drinks, including wine by the bottle, with the meal. Servers must be able to bottle, with the meal. Servers must be able to open a wine bottle properly, carry out the rituals of wine service, and answer questions about wines, specialty drinks, and recipes.


4444. . . . The Wine Steward or Sommelier

� Fine restaurants that feature elegant service may have a management-level employee who handles the ordering employee who handles the ordering and serving of wine. The wine steward wine steward wine steward wine steward (also called the cellarmaster, cellarmaster, cellarmaster, cellarmaster, winemaster, wine captain, or wine waiter, all terms applying to both sexes) presents the wine list at the


sexes) presents the wine list at the table, makes recommendations, discusses wines with customers, and takes care of serving the wines


� In addition to being part of the serving staff, a well-qualified wine waiter can become an integral part of the management team, who can do any or part of the management team, who can do any or all of the following:



� Create a wine list that fits your atmosphere and menu.

� Deal with suppliers and importers and order wine.� Deal with suppliers and importers and order wine.� Negotiate exclusive deals to carry certain wines

in your market.� Control and keep inventory of the cellar or wine-

storage area.


storage area.� Make purchasing decisions to maximize profits, in

some situations this includes buying wines to store for future years’ lists.


� Train your servers and other staff members in wine appreciation.

� Orchestrate and help publicize tastings, wine � Orchestrate and help publicize tastings, wine dinners, seminars, and other winerelated events for your business.


5555. . . . Security Positions

� This may come in the form of a doorman or door person. This person is expected to keep order if there are long lines to get in, to person is expected to keep order if there are long lines to get in, to ask for customers’ identification (and firmly but politely enforce a dress code or refuse to admit underage people), and to collect a cover charge cover charge cover charge cover charge at the front door.

� The cover charge is a fee for


� The cover charge is a fee for admittance to the bar, and is sometimes given to or split with the band if there’s live music.

6. Beverage-Management Positions

� In very large operations the beverage steward may work for the beverage manager or beverage director. This is often a senior-management position, part of the This is often a senior-management position, part of the team that runs a corporate operation: a hotel, a large nightclub, a high-volume restaurant, or an entire hotel or restaurant chain.

� The beverage director is in charge of hiring, training, and supervising all beverage-related personnel; purchasing all beverages and beverage equipment;


purchasing all beverages and beverage equipment; establishing and maintaining inventory and control systems; setting standards; and making policy on matters relating to beverage operation.


� A beverage director is either part of, or reports to, top management.

� In some large organizations responsibility for food-� In some large organizations responsibility for food-and-beverage service is combined into one position called the food-and-beverage director.

� Such management positions require several years of industry experience, preferably firsthand experience in each area of responsibility.


each area of responsibility.


� following list of qualities that you will find in the best bar managers:1. Business training.1. Business training.2. Market knowledge3. Desire to lead4. Maturity and stability5. Financial wisdom


5. Financial wisdom6. Street smarts7. Legal knowledge


� A manager’s overall responsibilities may include � hiring and firing; hiring and firing; hiring and firing; hiring and firing; � training, scheduling, and training, scheduling, and training, scheduling, and training, scheduling, and � training, scheduling, and training, scheduling, and training, scheduling, and training, scheduling, and � supervising personnel; supervising personnel; supervising personnel; supervising personnel; � forecasting and budgeting; forecasting and budgeting; forecasting and budgeting; forecasting and budgeting; � purchasing beverages and related supplies or requisitioning purchasing beverages and related supplies or requisitioning purchasing beverages and related supplies or requisitioning purchasing beverages and related supplies or requisitioning

them from a corporate commissary; them from a corporate commissary; them from a corporate commissary; them from a corporate commissary; � maintaining records; maintaining records; maintaining records; maintaining records; � carrying out control systems (the manager typically has the carrying out control systems (the manager typically has the carrying out control systems (the manager typically has the carrying out control systems (the manager typically has the

only key to the storeroom); only key to the storeroom); only key to the storeroom); only key to the storeroom);


carrying out control systems (the manager typically has the carrying out control systems (the manager typically has the carrying out control systems (the manager typically has the carrying out control systems (the manager typically has the only key to the storeroom); only key to the storeroom); only key to the storeroom); only key to the storeroom);

� handling cash and payroll; handling cash and payroll; handling cash and payroll; handling cash and payroll; � maintaining quality; and maintaining quality; and maintaining quality; and maintaining quality; and � promoting the enterprise and the merchandisepromoting the enterprise and the merchandisepromoting the enterprise and the merchandisepromoting the enterprise and the merchandise

Determining Determining Determining Determining Staff NeedsStaff NeedsStaff NeedsStaff NeedsDetermining Determining Determining Determining Staff NeedsStaff NeedsStaff NeedsStaff Needs

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Determining Determining Determining Determining Staff NeedsStaff NeedsStaff NeedsStaff NeedsDetermining Determining Determining Determining Staff NeedsStaff NeedsStaff NeedsStaff Needs

Determining Staff Needs

� Now that you’ve have learned what is expected of each major bar-related job, you can adapt the information by adding more detail about the specifics of your bar.by adding more detail about the specifics of your bar.

� For example, 1.1.1.1. will your bartenders be working a service bar or public will your bartenders be working a service bar or public will your bartenders be working a service bar or public will your bartenders be working a service bar or public

bar? bar? bar? bar? 2.2.2.2. Free pour, measured pour, or metered gun? Free pour, measured pour, or metered gun? Free pour, measured pour, or metered gun? Free pour, measured pour, or metered gun? 3.3.3.3. How many minimum drinks per hour must they serve? How many minimum drinks per hour must they serve? How many minimum drinks per hour must they serve? How many minimum drinks per hour must they serve?


3.3.3.3. How many minimum drinks per hour must they serve? How many minimum drinks per hour must they serve? How many minimum drinks per hour must they serve? How many minimum drinks per hour must they serve? 4.4.4.4. What kind of person will maintain your image? What kind of person will maintain your image? What kind of person will maintain your image? What kind of person will maintain your image? 5.5.5.5. This kind of information belongs in the This kind of information belongs in the This kind of information belongs in the This kind of information belongs in the job description, job description, job description, job description, a a a a

written blueprint of what is required in each job.written blueprint of what is required in each job.written blueprint of what is required in each job.written blueprint of what is required in each job.

1111. . . . Developing Job Descriptions

� Skills and aptitudes� Physical characteristics� Health requirements

Physical characteristics� Health requirements� Mental ability and attitude� Age requirements


BARTENDER JOB DESCRIPTIONBARTENDER JOB DESCRIPTIONBARTENDER JOB DESCRIPTIONBARTENDER JOB DESCRIPTION

Description:Description:Description:Description:� Bartenders work behind the bars and in back-of-the-house

areas. They prepare and sell drinks to Cocktail Hostesses and areas. They prepare and sell drinks to Cocktail Hostesses and customers. They prep their work area with several functions, measure and prepare drinks according to receipe, and make cash register transactions.

� Bartenders must handle credit card tabs, note spills and overrings, and address the cash register immediately after preparing an order. They accept tips, but do not allow tips to remain on the bar or do not exchange tips or change with cash


remain on the bar or do not exchange tips or change with cash register monies prior to the end of their shift. Bartenders perform cleanup and register checkout functions at the end of their shift. They also stock products and supplies.


� They perform “silent selling” and “upselling” techniques and inform customers of club activities and promotions. They serve customers by using “experience time” goals and create an upbeat, friendly environment in their work area. They must customers by using “experience time” goals and create an upbeat, friendly environment in their work area. They must function as a team member with Barbacks, other Bartenders, and Cocktail Hostesses. They must learn and use alcohol management techniques and advise the management staff of intoxicated or unruly customers.

� Due to the high level of customer interaction, the Bartender must perform all duties with great emphasis on cleanliness,


must perform all duties with great emphasis on cleanliness, personability, professionalism, and service. Bartenders are strongly encouraged to work up individual “Showtimes”—complete with costumes—to be performed throughout the evening with the Programmer.


Functions:Functions:Functions:Functions:� Prepare cocktails per recipe and serve per

specifications.� Prep, clean, and stock work area—before, during, and

specifications.� Prep, clean, and stock work area—before, during, and

after shift.� Accept credit cards, cash, and coupons for products.� Perform cash register functions, and checkout

accurately.� Perform “silent selling” and “upselling” functions.� Monitor customers for intoxication, rowdiness, or need


� Monitor customers for intoxication, rowdiness, or need for drinks.

� Have “Showtime” mentality.Supervisors: Supervisors: Supervisors: Supervisors: Bar Manager and Management Staff.

BARBACK JOB DESCRIPTIONBARBACK JOB DESCRIPTIONBARBACK JOB DESCRIPTIONBARBACK JOB DESCRIPTION

Description:Description:Description:Description:� Barbacks work behind the bar areas and in back-

of-the-house areas. Barbacks support the work Barbacks work behind the bar areas and in back-of-the-house areas. Barbacks support the work of Bartenders by performing tasks of fruit cutting, juice making, filling of ice bins, removal of trash, and preparation of “speciality” cocktails. They have several opening and closing duties involving product stocking and cleanliness, and assist in


product stocking and cleanliness, and assist in keeping their work area clean through operating hours.


� Barbacks do not accept tips or money from customers and do not handle transactions or register functions. They assist in the preparation of the Liquor Requisition form and advise the Bar Manager of needed supplies They assist in the preparation of the Liquor Requisition form and advise the Bar Manager of needed supplies and products.

� Barbacks only prepare frozen cocktails. They wash glassware and utensils, and supply the Bartenders with needed liquor, beer, and supplies. Because of the extensive customer contact, Barbacks must work with courtesy, energy, and speed. Barbacks are strongly


courtesy, energy, and speed. Barbacks are strongly encouraged to work up individual “Showtime” routines—complete with costumes—to be performed throughout the evening with the Programmer.


Functions:Functions:Functions:Functions:� Set-up the bars for operation.� Clean and mop the bars during operation and at � Clean and mop the bars during operation and at

the end of operation.� Stock glassware and product.� Change out condiments and juices for the

Bartenders.� Prepare club “specialty” cocktails.


� Prepare club “specialty” cocktails.� Monitor customers for intoxication, rowdiness, or

need for drinks.� Have “Showtime” mentality.


Supervisors:Supervisors:Supervisors:Supervisors:� Bar Manager.� Management Staff.� (Directed by Bartenders during operating hours.)� (Directed by Bartenders during operating hours.)Uniform:Uniform:Uniform:Uniform:� Black work shoes or coaching shoes, black pants, white button-

down oxford shirt (long� sleeve), blue apron, blue bowtie, name tag, three club buttons,

one button of choice, pen,� lighter, and a smile.Grooming:Grooming:Grooming:Grooming:


Grooming:Grooming:Grooming:Grooming:� “All-American scrubbed-up” look for hair. Clean and neat hair,

nails, and skin. For men, no� beards or earrings.

Training The StaffTraining The StaffTraining The StaffTraining The StaffTraining The StaffTraining The StaffTraining The StaffTraining The Staff

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Training The StaffTraining The StaffTraining The StaffTraining The StaffTraining The StaffTraining The StaffTraining The StaffTraining The Staff

TRAINING THE STAFF

� The first part of the manager’s personnel responsibility, explaining jobs and assigning responsibilities, begins right after employees are responsibilities, begins right after employees are hired. Every person must learn exactly what is expected of them


TRAINING THE STAFF

� There are at least four good reasons for taking the time and effort to give employees a basic, all-inclusive orientation session before they start work:orientation session before they start work:1.1.1.1. They will be able to work faster and with less confusion.They will be able to work faster and with less confusion.They will be able to work faster and with less confusion.They will be able to work faster and with less confusion.2.2.2.2. They will feel more confident in their jobs, and this will They will feel more confident in their jobs, and this will They will feel more confident in their jobs, and this will They will feel more confident in their jobs, and this will

be reflected in their attitude toward work and in the way be reflected in their attitude toward work and in the way be reflected in their attitude toward work and in the way be reflected in their attitude toward work and in the way they relate to your customers.they relate to your customers.they relate to your customers.they relate to your customers.

3.3.3.3. They will more easily establish good relationships with They will more easily establish good relationships with They will more easily establish good relationships with They will more easily establish good relationships with coworkers.coworkers.coworkers.coworkers.


coworkers.coworkers.coworkers.coworkers.4.4.4.4. They will be more likely to stay if you ensure that they They will be more likely to stay if you ensure that they They will be more likely to stay if you ensure that they They will be more likely to stay if you ensure that they

have a good experience from the very first day.have a good experience from the very first day.have a good experience from the very first day.have a good experience from the very first day.

Bartender Training

� As you might imagine, introducing a new cocktail in such an establishment is quite a feat and includes the following steps:1.1.1.1. Standardizing the drink recipeStandardizing the drink recipeStandardizing the drink recipeStandardizing the drink recipe1.1.1.1. Standardizing the drink recipeStandardizing the drink recipeStandardizing the drink recipeStandardizing the drink recipe2.2.2.2. Pricing the drinkPricing the drinkPricing the drinkPricing the drink3.3.3.3. Equipping the bars with ingredients and appliances (if Equipping the bars with ingredients and appliances (if Equipping the bars with ingredients and appliances (if Equipping the bars with ingredients and appliances (if

applicable) to produce the drinkapplicable) to produce the drinkapplicable) to produce the drinkapplicable) to produce the drink4.4.4.4. Training the bartenders to use the equipment and Training the bartenders to use the equipment and Training the bartenders to use the equipment and Training the bartenders to use the equipment and

ingredients to make the drinkingredients to make the drinkingredients to make the drinkingredients to make the drink5.5.5.5. Reprinting the cocktail menus and otherwise advertising Reprinting the cocktail menus and otherwise advertising Reprinting the cocktail menus and otherwise advertising Reprinting the cocktail menus and otherwise advertising

the ‘‘new’’ drink concoctionthe ‘‘new’’ drink concoctionthe ‘‘new’’ drink concoctionthe ‘‘new’’ drink concoction6.6.6.6. Programming the computerized cash registers to track Programming the computerized cash registers to track Programming the computerized cash registers to track Programming the computerized cash registers to track


the ‘‘new’’ drink concoctionthe ‘‘new’’ drink concoctionthe ‘‘new’’ drink concoctionthe ‘‘new’’ drink concoction6.6.6.6. Programming the computerized cash registers to track Programming the computerized cash registers to track Programming the computerized cash registers to track Programming the computerized cash registers to track

sales of the new drinksales of the new drinksales of the new drinksales of the new drink7.7.7.7. Familiarizing the servers with the drink, including a taste Familiarizing the servers with the drink, including a taste Familiarizing the servers with the drink, including a taste Familiarizing the servers with the drink, including a taste

of it, so that they can describe and sell itof it, so that they can describe and sell itof it, so that they can describe and sell itof it, so that they can describe and sell it

Sales Training

� This kind of training is a combination of the following:1.1.1.1. Product knowledgeProduct knowledgeProduct knowledgeProduct knowledge1.1.1.1. Product knowledgeProduct knowledgeProduct knowledgeProduct knowledge2.2.2.2. Sales skillsSales skillsSales skillsSales skills3.3.3.3. Guest psychologyGuest psychologyGuest psychologyGuest psychology4.4.4.4. Rules, etiquette, Rules, etiquette, Rules, etiquette, Rules, etiquette,

and techniqueand techniqueand techniqueand technique


Training in Beverage Laws

� The following are three more general ideas on which beverage laws are based:1.1.1.1. Alcohol may be served only during the days and Alcohol may be served only during the days and Alcohol may be served only during the days and Alcohol may be served only during the days and 1.1.1.1. Alcohol may be served only during the days and Alcohol may be served only during the days and Alcohol may be served only during the days and Alcohol may be served only during the days and

hours established by law in your area.hours established by law in your area.hours established by law in your area.hours established by law in your area.2.2.2.2. It is against state law everywhere to serve It is against state law everywhere to serve It is against state law everywhere to serve It is against state law everywhere to serve

alcohol to anyone under alcohol to anyone under alcohol to anyone under alcohol to anyone under 202020203.3.3.3. It is against the law to serve alcohol to anyone It is against the law to serve alcohol to anyone It is against the law to serve alcohol to anyone It is against the law to serve alcohol to anyone

who is clearly intoxicated.who is clearly intoxicated.who is clearly intoxicated.who is clearly intoxicated.


who is clearly intoxicated.who is clearly intoxicated.who is clearly intoxicated.who is clearly intoxicated.

Training in Beverage Laws

� A number of good training programs have been developed to teach bar managers and servers how to tell when people are drinking too much and what to do about it. In these courses you can expect to learn how managers and servers how to tell when people are drinking too much and what to do about it. In these courses you can expect to learn how to:1.1.1.1. Keep track of the number of drinks served to each customer.Keep track of the number of drinks served to each customer.Keep track of the number of drinks served to each customer.Keep track of the number of drinks served to each customer.2.2.2.2. Recognize behaviors that might indicate increasing intoxication.Recognize behaviors that might indicate increasing intoxication.Recognize behaviors that might indicate increasing intoxication.Recognize behaviors that might indicate increasing intoxication.3.3.3.3. Understand drink equivalencies (how strong different drinks are).Understand drink equivalencies (how strong different drinks are).Understand drink equivalencies (how strong different drinks are).Understand drink equivalencies (how strong different drinks are).4.4.4.4. Observe guests’ body types and sizes to determine how many drinks Observe guests’ body types and sizes to determine how many drinks Observe guests’ body types and sizes to determine how many drinks Observe guests’ body types and sizes to determine how many drinks

are ‘‘too many.’’are ‘‘too many.’’are ‘‘too many.’’are ‘‘too many.’’5.5.5.5. Encourage alternatives to alcohol (snacks, a cup of coffee, dinner).Encourage alternatives to alcohol (snacks, a cup of coffee, dinner).Encourage alternatives to alcohol (snacks, a cup of coffee, dinner).Encourage alternatives to alcohol (snacks, a cup of coffee, dinner).


are ‘‘too many.’’are ‘‘too many.’’are ‘‘too many.’’are ‘‘too many.’’5.5.5.5. Encourage alternatives to alcohol (snacks, a cup of coffee, dinner).Encourage alternatives to alcohol (snacks, a cup of coffee, dinner).Encourage alternatives to alcohol (snacks, a cup of coffee, dinner).Encourage alternatives to alcohol (snacks, a cup of coffee, dinner).6.6.6.6. Tactfully but firmly refuse to serve the person who can not handle any Tactfully but firmly refuse to serve the person who can not handle any Tactfully but firmly refuse to serve the person who can not handle any Tactfully but firmly refuse to serve the person who can not handle any

more (‘‘I’m sorry, but I’m not allowed to bring you another drink.’’).more (‘‘I’m sorry, but I’m not allowed to bring you another drink.’’).more (‘‘I’m sorry, but I’m not allowed to bring you another drink.’’).more (‘‘I’m sorry, but I’m not allowed to bring you another drink.’’).

Planning for ProfitPlanning for ProfitPlanning for ProfitPlanning for ProfitPlanning for ProfitPlanning for ProfitPlanning for ProfitPlanning for Profit

51

Planning for ProfitPlanning for ProfitPlanning for ProfitPlanning for ProfitPlanning for ProfitPlanning for ProfitPlanning for ProfitPlanning for Profit

PRICING FOR PROFIT

� Profit is the difference been total sales and total costs. For a bar total sales are the number of drinks sold multiplied by their selling prices.drinks sold multiplied by their selling prices.

� Several factors are involved: the cost of each drink, the effect of price on demand for the drink, the contribution of each drink to total sales, and the effect of the sales mix on profits.


The Demand/Price Relationship

� Costs and percentages are not the whole answer to pricing. Price is only one of two factors in total sales. The other, as you likely know, is the sales. The other, as you likely know, is the number of drinks sold. The price affects the number

� The effect of prices on numbers is the elusive secret of successful pricing—elusive because no one ever knows precisely what effect a change of


one ever knows precisely what effect a change of price will have on demand in any given situation.

Coordinating Prices to Maximize Profits

� The following price categories may be useful; they should at least give you a point of departure for your own plan:1.1.1.1. Highballs.Highballs.Highballs.Highballs. Two prices, one for highballs poured with well

brands and one for those made with call-brand drinks. 1.1.1.1. Highballs.Highballs.Highballs.Highballs. Two prices, one for highballs poured with well

brands and one for those made with call-brand drinks. Generally highballs make up the lowest price category.

2.2.2.2. Cocktails.Cocktails.Cocktails.Cocktails. Two prices, one for cocktails made with well brands and one for those made with call brands.

3.3.3.3. Frozen drinks and iceFrozen drinks and iceFrozen drinks and iceFrozen drinks and ice----cream drinks.cream drinks.cream drinks.cream drinks. Two prices, one for well and one for call brands.

4.4.4.4. AfterAfterAfterAfter----dinner liqueurs and brandies.dinner liqueurs and brandies.dinner liqueurs and brandies.dinner liqueurs and brandies. Two prices, one for


4.4.4.4. AfterAfterAfterAfter----dinner liqueurs and brandies.dinner liqueurs and brandies.dinner liqueurs and brandies.dinner liqueurs and brandies. Two prices, one for ordinary liqueurs and one for premium liqueurs and French brandies.

5.5.5.5. Specialty drinks.Specialty drinks.Specialty drinks.Specialty drinks. Two prices, one for well brands and one for call brands.

ESTABLISHING PRODUCT CONTROLS


55

CONTROLSCONTROLS


1111. Standard Drink Size. Standard Drink Size. Standard Drink Size. Standard Drink Size� In the vocabulary of the bar the term drink size drink size drink size drink size

refers to the amount of the prime ingredient In the vocabulary of the bar the term drink size drink size drink size drink size refers to the amount of the prime ingredient used per drink poured, not the size of the finished drink.

� As such if your drink size is 11⁄2 ounces, you will pour 11⁄2 ounces of the base liquor in each drink, whatever it is.


pour 11 2 ounces of the base liquor in each drink, whatever it is.

� This is your standard drink size.standard drink size.standard drink size.standard drink size.


2222. Standard Drink Recipe. Standard Drink Recipe. Standard Drink Recipe. Standard Drink Recipe� A recipe that specifies exactly how a given drink

is made at a given bar is known as a A recipe that specifies exactly how a given drink is made at a given bar is known as a standardized recipe

� It specifies the exact quantity of each ingredient, the size glass to be used, and the exact procedure for preparing the drink.



Standardized RecipeStandardized RecipeStandardized RecipeStandardized Recipe



3333. Standard Glassware. Standard Glassware. Standard Glassware. Standard Glassware� Each standard drink should be served in a

standard glass, a glass of specified size and standard glass, a glass of specified size and shape that is used every time that the drink is poured. The size is the more important feature since it controls both the quantity of the ingredients that must fill it and the taste,

� When standardizing your glassware choose whatever size and shape will give each drink the


When standardizing your glassware choose whatever size and shape will give each drink the most appeal. This doesn’t mean the glassware itself has to be special; it means that the drink in the glass should look appealing.

ESTABLISHING CASH ESTABLISHING CASH

60

ESTABLISHING CASH CONTROLS



� When a customer buys a drink you must have a way of making sure that the sale is recorded and that the money finds its way into the cash that the money finds its way into the cash register. There are many systems of paying for drinks.

� Whatever system, you need standard procedures for handling cash and some form of guest check for the record. You need the record. You want


for the record. You need the record. You want the cash. Some of your personnel and your customers might want the cash, too.


1. Fails to ring up sales and pockets the money2. Overcharges and pockets the difference3. Shortchanges customer and keeps change4. Brings in own liquor and sells it (using house mixes and 3. Shortchanges customer and keeps change4. Brings in own liquor and sells it (using house mixes and

garnishes)5. Brings in empty bottle, turns it in to storeroom, then

sells from bottle that replaces it and pockets money6. Short-pours a series of drinks, then sells others from

same bottle, keeping themoney7. Sells liquor from one bottle without ringing up, then


7. Sells liquor from one bottle without ringing up, then waters down the remainder to cover theft

8. Substitutes well liquor for call brand, collects for call brand but rings up well price, keeps the change

9. Smuggles out full bottles

The ServerThe ServerThe ServerThe Server

1. ‘‘Loses’’ guest check after collecting and pockets the money

2. Reuses guest check and keeps the money2. Reuses guest check and keeps the money3. Overcharges for drinks and pockets the difference4. Makes intentional mistakes in totaling guest check and

keeps the overage5. Intentionally omits items from guest check to increase

tip


tip6. Changes items and prices on guest check after

customer pays7. Gives too little change and pockets the balance

The CashierThe CashierThe CashierThe Cashier

1. Gives too little change and pockets the balance2. Fails to ring up guest check, pockets the money,

and ‘‘loses’’ guest check (blame falls on server)2. Fails to ring up guest check, pockets the money,

and ‘‘loses’’ guest check (blame falls on server)


The CustomerThe CustomerThe CustomerThe Customer

1. Walks out without paying2. Sends back drink or wine after half-emptying

glass or bottle2. Sends back drink or wine after half-emptying

glass or bottle3. Uses expired credit card4. Pays with a bad check



� The cash-control system that you devise to forestall all of these little tricks should both reduce opportunity and pinpoint responsibility.reduce opportunity and pinpoint responsibility.

� We suggest the following system:1. If there is no POS system to generate a

computerized check2. Direct staff to write all guest checks clearly and

in ink.


in ink.3. If possible use a precheck method of registering

drinks.


4.4.4.4. The bartender or cashier should ring up the sale, The bartender or cashier should ring up the sale, The bartender or cashier should ring up the sale, The bartender or cashier should ring up the sale, using the total on the POS terminalusing the total on the POS terminalusing the total on the POS terminalusing the total on the POS terminal

5. Instruct the server to print the amount received 5. Instruct the server to print the amount received from the customer on the bottom of the check.

6. Ring up each check individually when paid, and close the register drawer aftereach transaction.

7. Give receipts to customers along with their change


change8. Allow only one person at a time to operate the

cash register and to be responsible for the cash in the drawer.

Managing your Managing your Managing your Managing your Bar BusinessBar BusinessBar BusinessBar BusinessManaging your Managing your Managing your Managing your Bar BusinessBar BusinessBar BusinessBar Business

68

Managing your Managing your Managing your Managing your Bar BusinessBar BusinessBar BusinessBar BusinessManaging your Managing your Managing your Managing your Bar BusinessBar BusinessBar BusinessBar Business

Creating a Business PlanCreating a Business PlanCreating a Business PlanCreating a Business PlanCreating a Business PlanCreating a Business PlanCreating a Business PlanCreating a Business Plan

69

Creating a Business PlanCreating a Business PlanCreating a Business PlanCreating a Business PlanCreating a Business PlanCreating a Business PlanCreating a Business PlanCreating a Business Plan

Creating a Business PlanCreating a Business PlanCreating a Business PlanCreating a Business Plan

� This is the ‘‘resume’’ of your business: an instrument that shows a seasoned consideration for all aspects of running it. A good business plan for all aspects of running it. A good business plan should accomplish three things:1.1.1.1. It should serve as your basic operating toolIt should serve as your basic operating toolIt should serve as your basic operating toolIt should serve as your basic operating tool2.2.2.2. It should be useful to communicate exactly who It should be useful to communicate exactly who It should be useful to communicate exactly who It should be useful to communicate exactly who

and what you areand what you areand what you areand what you are3.3.3.3. It should be useful in obtaining financingIt should be useful in obtaining financingIt should be useful in obtaining financingIt should be useful in obtaining financing


3.3.3.3. It should be useful in obtaining financingIt should be useful in obtaining financingIt should be useful in obtaining financingIt should be useful in obtaining financing

Creating a Business PlanCreating a Business PlanCreating a Business PlanCreating a Business Plan

� Most experts suggest that you begin the research for this endeavor by deciding which beverages you are going to sell. The raw materials to make these drinks will take 20 to 25 percent of your gross sales. going to sell. The raw materials to make these drinks will take 20 to 25 percent of your gross sales. Estimating labor costs is the next task and typically the largest expense of any restaurant or bar. As much as one-third of your gross sales may be spent on employees’ wages and benefits. Occupancy costs (rent or mortgage payment on the space, utilities, and maintenance) should be limited to 8 percent of annual gross sales. In addition to startup costs, it is wise to


maintenance) should be limited to 8 percent of annual gross sales. In addition to startup costs, it is wise to maintain a cash reserve of 6 months’ operating expenses.

1. Using the Business Plan

1.1.1.1. Location analysisLocation analysisLocation analysisLocation analysis2.2.2.2. Competitor analysisCompetitor analysisCompetitor analysisCompetitor analysis3.3.3.3. SWOT analysisSWOT analysisSWOT analysisSWOT analysis2.2.2.2. Competitor analysisCompetitor analysisCompetitor analysisCompetitor analysis3.3.3.3. SWOT analysisSWOT analysisSWOT analysisSWOT analysis4.4.4.4. Lack of followLack of followLack of followLack of follow----throughthroughthroughthrough5.5.5.5. Much talk, minimal resourcesMuch talk, minimal resourcesMuch talk, minimal resourcesMuch talk, minimal resources6.6.6.6. ProcrastinationProcrastinationProcrastinationProcrastination7.7.7.7. Refining an idea endlesslyRefining an idea endlesslyRefining an idea endlesslyRefining an idea endlessly


7.7.7.7. Refining an idea endlesslyRefining an idea endlesslyRefining an idea endlesslyRefining an idea endlessly8.8.8.8. Focusing on the buyFocusing on the buyFocusing on the buyFocusing on the buy----inininin9.9.9.9. Lack of visionLack of visionLack of visionLack of vision

2222. . . . What Is My Bar Worth?

� Bar owners ask this question only occasionally, such as during a divorce, when making estate plans, or when mulling over the idea of selling plans, or when mulling over the idea of selling the business.

� And yet, by asking this basic question on a semiannual or annual basis, he or she can take concrete steps to increase the value of the business.


business.

2222. . . . What Is My Bar Worth?

� Value is a highly subjective concept and you may hear several other terms in discussions of what businesses are worth:what businesses are worth:1.1.1.1. Investment valueInvestment valueInvestment valueInvestment value2.2.2.2. Liquidation valueLiquidation valueLiquidation valueLiquidation value3.3.3.3. Intrinsic valueIntrinsic valueIntrinsic valueIntrinsic value


MARKETING MARKETING

76

MARKETING BAR BUSINESSMARKETING

BAR BUSINESS

MARKETING A BAR BUSINESS

� Shaping your marketing plan involves the following three major steps:1. market segment is a more or less homogeneous subgroup

of the total consumer market; its members have similar 1. market segment is a more or less homogeneous subgroup

of the total consumer market; its members have similar needs and wants, attitudes, lifestyles, income levels, purchasing patterns, and so on.

2. Determine which products and services this market segment wants to buy.

3. After you have defined these two essentials you can take the third step: Shape everything about your enterprise to attract customers and sell the product at a profit. In the


the third step: Shape everything about your enterprise to attract customers and sell the product at a profit. In the process you can position your enterprise in relation to the competition by creating an image that will set you apart from the rest.

1. Positioning Your Business

The PatronThe PatronThe PatronThe Patron� The success of your bar will depend to a large

degree on your ability to know your customers, � The success of your bar will depend to a large

degree on your ability to know your customers, which does not always mean calling them by their first names or remembering what they drink, although those are certainly handy skills.

� The overall guest experience guest experience guest experience guest experience is always affected by how the customer felt walking into the bar in


� The overall guest experience guest experience guest experience guest experience is always affected by how the customer felt walking into the bar in the first place


� The other components of the guest experience are:1. The service encounter1. The service encounter2. The service scape,3. The product itself

affects the guest experience.



The CompetitorsThe CompetitorsThe CompetitorsThe Competitors� We have already stressed the importance of

studying your competition—not just other bars studying your competition—not just other bars and restaurants in the area, but others anywhere in your town that might attract similar types of customers.

� Primary competitorsPrimary competitorsPrimary competitorsPrimary competitors are those bars with concepts similar to yours.


similar to yours. � Secondary competitorsSecondary competitorsSecondary competitorsSecondary competitors are those bars that could

be considered competition simply because they are located near your proposed site.


Physical AttributesPhysical AttributesPhysical AttributesPhysical Attributes� LocationLocationLocationLocation�

Ambiance AttributesAmbiance AttributesAmbiance AttributesAmbiance Attributes� Menus and drink listsMenus and drink listsMenus and drink listsMenus and drink lists�

LocationLocationLocationLocation� AccessibilityAccessibilityAccessibilityAccessibility� VisibilityVisibilityVisibilityVisibility� AppearanceAppearanceAppearanceAppearance

Menus and drink listsMenus and drink listsMenus and drink listsMenus and drink lists� PricesPricesPricesPrices� FoodserviceFoodserviceFoodserviceFoodservice� Service styleService styleService styleService style� AtmosphereAtmosphereAtmosphereAtmosphere� Special characteristicsSpecial characteristicsSpecial characteristicsSpecial characteristics


� Special characteristicsSpecial characteristicsSpecial characteristicsSpecial characteristics

Components of Atmosphere

� Your position in the market will be a positive image in the minds of customers that sets your enterprise apart. An image is, by definition, a enterprise apart. An image is, by definition, a subjective impression based on something unique or memorable about your place. It may come from a single feature or it may be the customer’s total experience.

� Image is the element that you will emphasize in


� Image is the element that you will emphasize in promotions, advertising, and on-site merchandising.


� By this time you probably have a pretty good idea of the overall impression you want to create: the atmosphere, or ambience, of your place. These words are hard to define but you know the atmosphere, or ambience, of your place. These words are hard to define but you know what they mean.

� They have to do with what is seen, heard, touched, and tasted—the total of sensory impressions, to which the customer adds a psychological ingredient of response.


psychological ingredient of response. � Ambience may well be the most influential part of

the customer’s experience and it is likely to make its impact immediately.


� You must address two major components when creating atmosphere:

� ((((1111) physical factors and () physical factors and () physical factors and () physical factors and (2222) human factors.) human factors.) human factors.) human factors. � ((((1111) physical factors and () physical factors and () physical factors and () physical factors and (2222) human factors.) human factors.) human factors.) human factors. � Among the physical factors appearance and comfort are

most important. � Appearance has the most immediate impact, from the

entrance and the interior as a whole, to the lesser details of uniforms, restrooms, tabletops, glassware, and matchbook covers.


matchbook covers. � Restrooms deserve special attention; they can cancel

out a previously favorable impression. � The types and quality of food served may also be

considered physical attributes of the bar.

Decor, Comfort, and Service

� Using decor to create atmosphere was discussed You might want to reread that discussion in light of all that you have learned since.

�

learned since. � Think in terms of your total concept, your individuality, and

your image. The look of your establishment is one of your most potent marketing tools: It’s the packaging of your product.



� Decor creates the first impression; comfort has a slower but no less significant impact. Furnishings—part decor, part comfort—can be chosen to fill both needs.Furnishings—part decor, part comfort—can be chosen to fill both needs.

� Lighting is also both decor and comfort, and sometimes a fine line of compromise must be drawn.

� Temperature is not important to the customer until it is too hot or too cold, then it becomes


Temperature is not important to the customer until it is too hot or too cold, then it becomes very important—too cold in front of the airconditioning vent, too hot without it.


� A ventilation system that draws smoke away and keeps the air fresh is an essential element of fresh is an essential element of a comfortable bar environment.

� Noise level is still another comfort factor that you can control according to customer tastes.

� Sight and sound provide the


tastes. � Sight and sound provide the

first impression, but human encounters provide the second and most lasting.

Bar Food and Snacks

� What you serve says as much about your bar as how the room looks. how the room looks.

� More and more bars are replacing chips, popcorn, and pretzels with ‘‘real food,’’ and charging for it.

� The simple addition of a bar menu can create a


The simple addition of a bar menu can create a completely different atmosphere.

Bar Food and Snacks

� When deciding how extensive the bar menu should be, take the following factors into account:account:1. Understand your limitations2. Set hours, at least for hot-foodservice3. Restaurant/bar combinations should function as a

team4. Be willing to update the menu regularly


4. Be willing to update the menu regularly5. Merchandise drinks and foods together

MARKETING TOOLS TOMARKETING TOOLS TO

91

MARKETING TOOLS TOATTRACT CUSTOMERSMARKETING TOOLS TOATTRACT CUSTOMERS

MARKETING TOOLS TO ATTRACT CUSTOMERS

� Word of Mouth� News, Reviews, and Feature Stories� Personal Contacts

News, Reviews, and Feature Stories� Personal Contacts� Promotional Events� Checking Your Progress

� Ask for Ask for Ask for Ask for � it Provide a short questionnaireit Provide a short questionnaireit Provide a short questionnaireit Provide a short questionnaire


� it Provide a short questionnaireit Provide a short questionnaireit Provide a short questionnaireit Provide a short questionnaire� Hire mystery shoppersHire mystery shoppersHire mystery shoppersHire mystery shoppers� Employee feedbackEmployee feedbackEmployee feedbackEmployee feedback

PRICING PRICING

93

PRICING AS A PROMOTIONAL TOOLPRICING AS A PROMOTIONAL TOOL

PRICING AS A PROMOTIONAL TOOL

� The role of pricing in promotion used to be viewed in terms of a simple formula:

� Reduce a price and you increase demand. Today � Reduce a price and you increase demand. Today most bar owners and managers look at this idea more soberly (pun intended).



� Not too long ago the universal means of applying the formula was the happy hour, a period of time in the late afternoon or early evening when all of the drink prices were reduced, or two drinks in the late afternoon or early evening when all of the drink prices were reduced, or two drinks were offered for the price of one. Now, the happy hour is against the law in many states.

� Many managers sighed with relief since they generally only broke even during happy hours and went along with them only to remain


and went along with them only to remain competitive.

� Besides in today’s climate few managers want to flirt with the risks of the intoxicated customer.


� One of these is to make a certain high-profit drink a ‘‘special of the day’’‘‘special of the day’’‘‘special of the day’’‘‘special of the day’’ by cutting its profit margin in half.margin in half.

� Even the most upscale bars can learn from quick-service restaurant chains about the practice of bundling, or packaging two or more items together and selling them at a fixed price.


PROTECTING AND EXPANDING

PROTECTING AND EXPANDING

97

EXPANDINGYOUR CONCEPTEXPANDING

YOUR CONCEPT

PROTECTING AND EXPANDING YOUR CONCEPT

� Protecting Business Identity� Branching Out

� As you develop the market position of the first bar � As you develop the market position of the first bar determine whether its appeal may be broader than in your existing market area: Elsewhere in your city or county? Could the appeal be statewide, national, or international?

� Establish a system to replicate the initial unit’s success. Determine exactly what is required, and whether you and your business partners can afford to provide it.


your business partners can afford to provide it.� Ensure that you can deliver the same support—in terms of

both staff members and funds—to the second unit as the first one enjoys.